Apple and Qualcomm are currently engaged in a legal battle, with the former suing the latter for $1 billion over patent royalties. Despite the legal rhetoric, however, Qualcomm doesn’t plan to let business between it and Apple be affected, according to a new report from Recode.
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Financially, Qualcomm would lose a significant amount of business if it were to let its legal battle with Apple affect the partnership between the two companies. While Apple uses its own processors in the iPhone, it uses modem chips from Qualcomm and Intel. Qualcomm requires companies that use its modem chips to license its underlying cellular patents, but Recode explains that the company has never cut off supplies to partners in the past due to patent disputes:
Qualcomm requires those that want its chips to also have a license to its underlying cellular patents. However the sources note that the company hasn’t cut off chip supplies in the past, even when there were disputes over patent licensing.
Today’s report cites sources close to Qualcomm and also notes that the company is considering filing its own lawsuit against Apple.
According to the report, Qualcomm is weighing the possibility of filing lawsuits in response to Apple, though it’s unclear if it would be those suits would be filed in the United States or elsewhere. Additionally, of course, Qualcomm is trying to get the Apple case dismissed.
Apple hit Qualcomm with a $1 billion lawsuit late last week over patent royalties. Apple’s suit came following an FTC complaint that alleged Qualcomm engaged in monopolistic practices to prevent Apple from sourcing key components from competitors. Qualcomm later responded to Apple’s claims, saying the company “intentionally mischaracterized our agreements and negotiations.”
At this point, there’s no end in sight for Apple and Qualcomm’s legal battle and unless the two companies are able to resolve their differences outside of court, it’ll be awhile before this case ends.